SENATE, No. 675

 

STATE OF NEW JERSEY

 

INTRODUCED JANUARY 29, 1996

 

 

By Senators LITTELL and DiFRANCESCO

 

 

An Act authorizing the Director of the Division of Taxation to establish a State tax payment system by credit card, debit card or electronic funds transfer, supplementing Title 54 of the Revised Statutes.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. As used in this act:

    "Cardholder" means the person or organization named on the face of a credit card or debit card to whom or for whose benefit the credit card or debit card is issued by an issuer.

    "Card payment system" means a technical procedure by which tax obligations owed the State may be paid by credit card or debit card.

    "Credit card" means any instrument or device linked to an established line of credit, whether known as a credit card, charge card, credit plate, or by any other name, issued with or without fee by an issuer for the use of the cardholder in satisfying outstanding financial obligations, obtaining money, goods, services or anything else of value on credit.

    "Debit card" means any instrument or device, whether known as a debit card, automated teller machine card, or by any other name, issued with or without fee by an issuer for the use of the cardholder in obtaining money, goods, services or anything else of value through the electronic authorization of a financial institution to debit the cardholder's account.

    "Electronic funds transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephone, or computer or magnetic tape for the purpose of ordering, instructing or authorizing a financial institution to debit or credit an account.

    "Electronic funds transfer system" means a technical procedure by which tax obligations owed the State may be paid by an electronic transaction between the financial institution of the person or organization owing the obligation and the financial institution of the State.

    "Issuer" means the business organization or financial institution that issues a credit card or debit card, or its duly authorized agent.

    "Service charge" means a fee charged by the Division of Taxation in excess of the total obligation under this act owed by a person or organization to offset processing charges or discount fees for the use of a card payment system or an electronic funds transfer system

 

    2. Subject to the provisions of section 3 of P.L. , c. (C. ) (now pending before the Legislature as this bill), the director may establish a card payment system or electronic funds transfer system for payments of State taxes.

 

    3. Notwithstanding the provisions of any other law to the contrary and if not legally prohibited by an issuer, the director is authorized to assess and collect service charges related to the payment of obligations owed to or collected by the Division of Taxation when credit cards, debit cards or electronic funds transfer systems are utilized.

 

    4. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill authorizes the Director of the Division of Taxation to establish a system for the payment of State taxes by credit card, debit card or electronic funds transfer.

 

 

                             

 

Authorizes establishment of State tax payment system by credit card, debit card or electronic funds transfer.